Citi bank sold its offshore operation in Uruguay to Insigneo

RIO DE JANEIRO, BRAZIL – The companies signed an agreement for Insigneo to acquire Citi Asesores de Inversión Uruguay and Citi International Financial Services (CIFS), the bank’s Puerto Rico-based broker, according to Citywire Americas.The bank confirmed the deal in a statement and said that both sales are subject to “regulatory approval.”

The specialized website last May reported that Insigneo and Citi were in talks over the bank’s offshore wealth management operation in Uruguay. Negotiations stalled after Insigneo’s then CEO – one of the main drivers of the purchase – Daniel de Ontañon was placed on administrative leave following a dispute over compensation.

Following de Ontañon’s departure from Insigneo, negotiations were resumed and recently completed.

The bank’s statement explained that “Citi will maintain all existing bank deposit relationships with wealth management clients switching to Insigneo. In addition, Citi and Insigneo have agreed to explore the feasibility of Citi offering banking services to existing Insigneo clients. Citi’s strong presence in Puerto Rico and Uruguay in serving institutional clients will remain unchanged.”

The deal does not include Citi’s corporate banking operation in Montevideo or Citi’s onshore wealth management office in Montevideo’s Ciudad Vieja, which is overseen by Gustavo Amoza and has some dozen advisors serving clients in Argentina and Uruguay.

Last year, Citi Asesores de Inversión Uruguay, the group’s offshore wealth management business located in Montevideo’s Zonamerica free zone, had 35 advisors and was headed by Ignacio de Castro.

“We are extremely happy to add CIFS and Citi Asesores to Insigneo Financial Group’s growing platform, and we are pleased to continue our relationship with Citi as a provider of banking services to our new clients,” said Insigneo president and CEO Raúl Henríquez.